The U.S. Treasury Department and the Internal Revenue Service (IRS) have announced new guidelines that will make it easier for Wall Street-based digital asset exchange traded funds (ETFs) to generate income through staking.
Due to this regulatory movement, Gain financial clarity on staked amounts and allow maximum usage in line with regulations by the institution.
According to U.S. Treasury Secretary Scott Bessent, the measure will “increase returns for investors, foster innovation, and maintain the United States as a global leader in digital assets.”
Simply put, staking is the act of depositing cryptocurrencies in a smart contract, wallet, or exchange for profit. In the context of ETFs, staking means: The Fund uses crypto assets to participate in the validation of transactions and generate additional rewards.
As CriptoNoticias reported, staking futures funds already exist, such as REX Shares’ Solana-based ETF and Osprey Funds, but this new regulation could accelerate the presentation and approval of more products by investment firms.
ETF issuers who want to introduce staking A strict set of conditions must be adhered to to ensure safety and compliancedetailed by ConsenSys attorney Bill Hughes. The main condition is to only store digital assets and cash of the type in question. Use qualified custodians to manage your keys and perform staking. Maintain a liquidity policy that allows redemptions even when assets are blocked (captive).
On top of that, Companies must maintain independent agreements with staking providers It does not engage in discretionary operations and strictly limits its activities to holding, staking, and exchanging assets. These guidelines aim to ensure that the incorporation of staking rewards takes place under a framework of investor protection and strict compliance.